Wednesday, June 29, 2016

Benefits of Seventh Pay Commission [Salary, Pension Hike]

Seventh Pay Commission implementation finally got “yes” nod from Cabinet. Indian government has approved all recommendation of seventh pay commission and it will be implemented soon, 14.27 per cent of salary hike, pension hike, arrears will be provided to central government employees Very soon.

Benefits of Seventh Pay Commission [Salary, Pension Hike]

Seventh Pay Commission
Today, modi government’s cabinet has given green nod to implantation of Seventh pay commission. Below is some of the major highlights of Seventh pay commission;

7th Pay Commission Implementation [Highlights]

1. 14.27 Per cent of increase in basic pay, overall pay will increase around 23.6% hike. 24% hike in pension.
2. 42 lakh central government employees and 52 lakh pensioners will get benefit of Seventh pay commission hike.
3. Rs.1.02 trillion of burden lead on central government (around 0.7% of GDP)
4. Rs.18,000 of minimum of monthly pay and maximum of Rs.2.5 lakh for cabinet secretary if fixed as per seventh pay commission recommendation.
5. HRA will be paid at 24%, 16% and 8% as per class X,Y and Z.
6. The new recommendation of seventh pay commission will be effective from 1st January, 2016.
7. For next 10 years, same pay commission will be followed.
8. IAS, IPS, and IRS class employee will get same pay band.
9. Arrears will be paid soon, every year 3% of increase.
10. Changes in Basic pay salary after Seventh Pay commission
On the below table you can check how much change in your salary (basic) will be added after seventh pay commission;

Hike in Basic Salary after 7th Pay Commission 

Before 7th Pay commission After 7th Pay commission
Rs.7000 Rs.18000
Rs.13500 Rs.35400
Rs.21000 Rs.56100
Rs.46,100 Rs.118500
Rs.80000 Rs.225000
Rs.90000 Rs.250000

Changes in retirement age after 7th Pay commission

Some employee’s union has also demanded 7th pay commission to increase retirement ages. Below is some recommendation for retirement ages;
  • 33 years of service or 60 years of age, whichever first
  • VRS option at 30 years of service or 55 years of age as per grade
  • Gratuity limit is increased from 10 to 20 lakhs (whenever 50% hike in DA and Gratuity will be increased 25%).

Lowest in last 70 years

Every pay commission has increased salary by 23-25% in past all commission, but 7th pay commission hike is the lowest in last 70 years, post independence.


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